Well Crew, in case you hadn't noticed, we are still moving within a very tight trading range at the moment as the this epic battle comes to its final resolution. If you have been watching closely you may have noticed that lady silver has been increasingly thumbing her nose at the manipulators over the past week or so.
The manipulators say "There ya go m'lady!' and violently pull her down to $26.75, but she tosses her head and say's "Oh no kind sir, I much prefer the view up here at $27.45..." and hey presto she's back there within 30 minutes - as if nothing had happened! Epic fail for the cartel guys!
The silver price is now showing signs of restlessness and increasing strength - a bit like Gulliver waking up with all those little ropes pegging him to the ground! It didn't take him long to get back on his feet!
Taking a look at the chart you can see why serious buyers (those to want to actually accumulate the metal - like Seor Sprott) will be increasingly less likely to place bids below the $26-27 floor. Sure they might get a lucky 'dip' but the odds are increasingly against them.
The triple/quadruple bottom is putting a very solid floor under the price. Would anyone like to actually short silver at these levels? Good luck with THAT strategy!
Time wise the upside breakout could come at any moment - all the bullish triggers are in place quite (apart from QE3) - but I think we still need to prepare to wait it out another month or even two. With silver, the manipulators do not normally "give an inch", so we ought to expect every reasonable rally will be delayed by the maximum extent possible - and be opposed as strenuously as possible.
This brutal 'rigor' on behalf of the manipulators is reflected however in the size and scope of the current silver pennant. It is beautifully and very strongly formed - due to all the attacks that went into 'making' it - and it will prove to be a formidable adversary once it gets onto its feet.
One thing stands out here - JPM have ONLY bought themselves time - NOTHING else.
(I'm expecting the AUD to generally increase as silver and gold take off in the coming months - so the price rally might be 'tempered' here (in AUD terms) as our currency picks up again. That's sometimes sad for new stackers, but it does mean that all your remaining AUDs are growing relative to the rest of the world.)
SPOT: USD $27.25